Japanese Bond Yields Surge to Near 16-Year Highs Amid Global Sell-Off. Japanese bond yields surge, with the 10-year JGB yield crossing 1.5% for the first time since June 2009. The 30-year bond yield also breached the 2.5% mark, reaching levels not seen since 2008. This surge in yields is attributed to a global bond sell-off, …
Japanese Bond Yields Surge to Near 16-Year Highs Amid Global Sell-Off.
Japanese bond yields surge, with the 10-year JGB yield crossing 1.5% for the first time since June 2009. The 30-year bond yield also breached the 2.5% mark, reaching levels not seen since 2008. This surge in yields is attributed to a global bond sell-off, particularly influenced by a sharp rise in European government bond yields, including a notable spike in German 10-year bond yields to 2.8%, their highest since October 2023.
The yield on the 10-year Japanese bond surged by nearly 8 basis points to reach 1.5%, marking its highest level since June 2009. The 30-year bond yield climbed 13 basis points, surpassing the 2.5% threshold for the first time since 2008.
The increase in Japanese bond yields is part of a broader global trend, influenced by rising yields in other major economies. The German 10-year bund yield soared as much as 31 basis points, contributing to upward pressure on global yields.
Investors are speculating that the Bank of Japan will continue to raise interest rates, further driving bond yields higher. Deputy Governor Shinichi Uchida has indicated that the central bank will maintain a gradual upward path for interest rates.
Japan’s ongoing inflation above the Bank of Japan’s target has also contributed to expectations of future rate hikes, supporting a surge in Japanese bond yields.
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